The Affordable Care Act requires that employers who offer an ICHRA or a self-insured health plan pay a fee to fund the Patient-Centered Outcomes Research Institute (PCORI).
Employers must pay this fee as they file their IRS Form 720 in July. Every June, Venteur will provide your expected PCORI fee and help you to prepare the IRS Form 720. You are responsible for paying and submitting the IRS Form 720.
How is the PCORI Fee Calculated?
For 2022, employers must pay $2.79 for each employee whose health insurance plan ended after October 1, 2021, and before October 1, 2022.
The $2.79 fee is per covered individual, based on the average number of employees who have accepted your ICHRA contribution. Employees' dependents are not included in the calculation, nor are employees who declined your ICHRA contribution. The IRS provides more information on PCORI fees here.
Please note that the IRS is currently revising its guidance for 2023. Venteur will inform you of potential updates.